Burger King is launching a new deal to defeat McDonald’s in the latest fast-food war

On Tuesday, Burger King is
debuting its new five for $4 deal. For $4, customers can buy
a bacon cheeseburger, small french fries, four-piece chicken
nuggets, a small drink and a chocolate chip cookie.

The deal is launching just one
day after the debuts of two notable fast-food bargains from
McDonald’s and Pizza Hut.

On Monday, McDonald’s rolled out
theMcPick 2,which allows customers to pay $2 for two of
the following offerings: a McChicken, a McDouble, small fries, or
mozzarella sticks. The same day,Pizza Hut debutedits limited-time $5 Flavor Menu,
from which customers can order two of the seven items for $5
each.

The reason for the rise of the
bargain combo menu is twofold. First, customers tend to want to
save money in the new year, turning to quick-service chains for
bargain meals. Second, fast-food companies are competing for the
position of best value chain — while still turning a
profit.

Two years ago, McDonald’s axed
its Dollar Menu, replacing it with the Dollar Menu and More
—an unsuccessful
replacementthat the
company is now retiring. The Dollar Menu had been retired because
single-item deals priced at $1 were no longer profitable for
franchisees or the company.

McDonald's McPick
2Hollis Johnson

In contrast, combination-centric
deals, like the five for $4 at Burger King and
McDonald's McPick 2, allow for a mix of more and less
profitable items while still offering customers the bargain
needed to get them through the door. Ideally for the companies,
these customers will then add on high-profit margin items (like
soft drinks) to their orders and keep coming back to the
restaurant for the deals in the future.

In the past year, Wendy’s and
Burger King’s promotions havehelped boost company
sales, as McDonald’s
has struggled to find value offerings that do the same. The
McPick 2 is part of McDonald’s broader effort to restore more
permanent national value platforms — a mission that, if it
succeeds, would be major blow to the rest of the fast-food
industry. With offerings like the five for $4, it’s clear Burger
King isn’t going to fall behind in the fast-food price
wars without a fight.